In a new legal skirmish, the U.S. Federal Trade Commission has taken on Uber Technologies, accusing the tech giant of enrolling users in its Uber One subscription service without their explicit consent. The lawsuit, filed in San Francisco, alleges that Uber misled consumers about the cost-saving benefits of the $9.99 per month service, which promises discounts on ride-hailing and food-delivery fees.
The FTC claims that Uber misrepresented savings of around $25 per month to subscribers and made it overly difficult for users to cancel their memberships. FTC Chairman Andrew Ferguson condemned such deceptive tactics, stating that American consumers are weary of being ensnared in unwanted subscriptions with elusive cancellation processes, and that the regulatory body would not tolerate such practices.
Uber, on the other hand, vehemently denies the allegations, with company spokesperson Noah Edwardsen asserting that Uber never enrolls or charges customers without their explicit consent. Edwardsen expressed disappointment at the FTC's decision to move forward with the lawsuit but remained confident in the legality and transparency of Uber One's sign-up and cancellation procedures.
This legal battle marks another chapter in Uber's contentious relationship with the FTC. In the past, the company has settled with the FTC over allegations of deceptive privacy claims, exaggerated earnings promises to prospective drivers, and failure to report a massive data breach in a timely manner. As the case unfolds, all eyes will be on the courts to determine the veracity of the FTC's claims and Uber's defense.